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The amount invested by global players in mainland companies soared more than 50 percent in the 12 months to June, as overseas investors sought to plug into the rapidly expanding economy, according to a report. Global accounting firm Grant Thornton's report found that 266 international companies from 41 countries and regions bought shares worth US$14 billion from their mainland counterparts in the 12 months to June 30, representing a 52 percent year-on-year growth from US$9 billion. "It seems that international companies can't afford not to be on the mainland. Doing business on the mainland is no longer an option for more affordable business costs, but a natural choice for all shareholders," Grant Thornton's associate director Martin Cheung told China Daily. "Everyone wants to tap the Grant Thornton's report, "Buying into China 41 countries enter the dragon," shows that the financial services sector proved to be the most attractive investment, with almost US$10 billion worth of international funds pouring into mainland service companies. "It is very tempting for all sectors wanting to invest in China; however, with the average financial services deal being US$322 million, it is clear to see that this is currently where the greatest investment opportunities lie," said Desmond Yuen, a partner and head of Grant Thornton's China services. The high technology sector received the highest number of deals according to the report, followed by materials and industrials. In the 12-month period, US companies claimed a 26.1 percent market share and completed 62 deals worth US$5 billion. Cheung said the mainland's newly imposed merger and acquisition laws would not halt the influx of overseas investors in the long run. "The regulators are very open-minded and likely to relax some restrictions to be in line with international norms," said Cheung. But international companies still have many hurdles to overcome as the mainland's booming economy develops. And merger and acquisition activities are not one-way; there are more outbound activities initiated by the mainland's giant enterprises looking for opportunities in overseas markets. The most recent acquisition was made by China Construction Bank, the country's third-largest lender. It inked an agreement with Bank of America in late August to acquire 100 percent of the equity interest in its Hong Kong and Lenovo became the world's No 3 personal computer manufacturer when it bought The mainland has increased its investment in (
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